Mynews net profit jumps 30% in 1Q on better sales, new outlets

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KUALA LUMPUR (March 22): Mynews Holdings Bhd's net profit jumped 30% to RM8.24 million in the first quarter ended Jan 31, 2019 (1QFY19) from RM6.34 million a year earlier, helped by better sales and contributions from new outlets.

Revenue grew 37% to RM123.5 million from RM90.12 million a year earlier. “The improved revenue was principally contributed by the increase in the number of outlets and higher sales by the existing outlets consequent to the continuous efforts of improving the product offering and store concept,” it said in a filing with the exchange.

In line with the higher number of outlets and business volume, Mynews said its operating expenses also increased by 31% year-on-year to RM33.1 million.

The group's total outlets grew to 439 as at end-January this year compared with 366 a year earlier.

“Mynews remains optimistic of its growth and the sustainability of its business, which is underpinned by the vast potential that could be reaped from its upcoming FPC (food processing centre) and overall business transformation initiatives.

“The Maru Kafe brand concept and the introduction of more attractive product offerings as a prelude to the launching of the FPC have garnered positive response from the customers and it should augur well for the group,” it added.

Mynews closed up 1 sen or 0.75% at RM1.34, giving it a market capitalisation of RM914.09 million.